HSBC has raised the price targets on Apollo Hospitals and Aster DM. For Apollo Hospitals, the new target price is Rs 2,700 versus the earlier target price of Rs 2,400. HSBC believes that there is a large headroom for Apollo Hospitals to improve its return on capital employed (RoCE). The brokerage house expects it to be 16.5 percent by FY23 versus just 10.3 percent in FY20.
The brokerage has raised the target price on Aster DM to Rs 195 from Rs 172. It believes that free cash flow generation and deduction in that is a key rerating for the stock.
CNBC-TV18’s Nimesh Shah has more details.
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